Thursday, June 29, 2017
By Manoj Kumawat
Tata-Volkswagen Collaboration Results In Heart-Breaking End
The highly awaited collaboration between German legendry car maker Volkswagen and domestic car maker Tata Motors has come to a sad end before it would have proved be a beneficial deal for both the auto legends of their respective regions. According to reports the sources associated closely with both the groups said that still lots of discussions and studies are yet to go and German car maker feels that outsourcing Advance Modular Platform (AMP) from domestic car maker Tata Motors is not going to offer any benefit to car manufactured by both Volkswagen and Skoda.
It is reported that Volkswagen feels the joining hands of Tata Motors is not going to make any huge profits to the group and secondly determining the clauses for partnership also seems to be a challenging task to the German maker. One of the authentic sources from Volkswagen on the condition of not disclosing his name said the group is not able to determine that whether the alliance will be called as a joint venture, a licensing pact or a contract manufacturing arrangement.
The light was partnership between Volkswagen and Tata Motors was switched on almost one and half years back, when with an objective to enhance its presence in Indian car maker German car maker decided to use India as the major market for exporting its cars. After exploring various options the group decided to join hands with the domestic car maker Tata Motors which is being headed by a German. Moreover as the manufacturing plant of Tata Motors is also located close to the manufacturing plant of Volkswagen group in Pune, it would have been beneficial for both the groups to exchange the technology.
It is also believed that as the things progressed between both the car makers cultural differences also emerged between both of them and it was felt that these differences could result decrease in the percentage of the profit. Now as almost everything is over between the two legendaries the German group still seems to have some hope of structuring this partnership and think on the factors which could help in shaping this alliance, however individual profit will be the main objective in any case.
